Source:
Reuters UKSABMiller and Molson Coors to combine US operations
Tue Oct 9, 2007 1:58 PM BST
By David Jones
LONDON (Reuters) - Brewers SABMiller (SAB.L) and Molson Coors Brewing (TAP.N) have agreed to combine their U.S. operations to create a venture with annual sales of $6.6 billion that will be a strong number-two player to Anheuser-Busch (BUD.N).
The venture, MillerCoors, will generate around $500 million of annual cost savings by year three after completion and is subject to obtaining clearance from U.S. competition authorities, the two groups said in a statement on Tuesday.
"We expect this approval to be forthcoming ... The combination will create a strong number-two player in the U.S. beer market with 30 percent market share," said analyst Matthew Webb at Cazenove.
The deal brings together the second-largest U.S. brewer with beer brands such as Miller Lite and Miller Genuine Draft and the third-largest, Molson Coors, which brews Coors Light, Molson Canadian and Molson Dry beers.
Read more:
http://investing.reuters.co.uk/news/articleinvesting.aspx?type=tnBusinessNews&storyID=2007-10-09T125811Z_01_WLB3071_RTRIDST_0_BUSINESS-SABMILLER-MOLSONCOORS-DC.XML
People who don't drink the beer brewed by either one will continue not to drink the beer brewed by the combined company. Or vice versa. Whatever.